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Cleaner Production 
CP in China

Papers Delivered at International Conference on Cleaner Production
Beijing, China -- September 2001 -- Paper 20 of 30

The Proposal to the Policy and Law System 
for Cleaner Production in China

Du xiang-ying, Hao fu-an, Zhang hong, Wang yao–hui
(Academy of Machinery Science & Technology P.R.C, Beijing, 100044)

Abstract: The article first analyses some problems against The Cleaner Production principle in related to existing policies and legislation in China. It illustrated the location of The Cleaner Production policy in the national industrial policies and environment and resource policies. Furthermore, the system of policy and legislation for implementing The Cleaner Production in China is proposed.

Keywords: the Cleaner Production, policy, legislation, position, system

How to control industrial pollution is a worldwide issue. The Cleaner Production emphasizes on Source Reduction of pollutant. It decreases pollutant to the minimum by controlling the process of production and the life- cycle of products, and thus accomplishing the unity of benefits of environmental and economics. The ideas will change the traditional modes of “harness after pollution” and to create Cleaner Industry. Therefore, to pursue The Cleaner Production is considered to be an essential way to accomplish industrial sustainable development.

The Cleaner Production has been carried out for over 10-15 years in developed countries. Same as China and India, many developing countries are also working hard to improve the practice of The Cleaner Production in recent years. In China, as industrial enterprises have been following an extensive form of operation for a long period of time, the progress of practicing The Cleaner Production has been more or less slow down, while kinds of difficulties arose. It is an urgent issue to introduce market mechanism, strengthen the guidance of policy, and to speed up the practice of the Cleaner Production by means of legislation.

1. Analysis of problems in current domestic policy and legislation

So far, China has already set up “Environmental Protection law” as well as sub-legislation related to the environmental and resources protection. Upon which, a whole sets of legislation has been accomplished basically. It’s true that the amount of articles in legislation for environment protection is not less than any of the developed countries, in the mean time, related measures and regulations have been continuously issued and carried out. However, for complicated reasons, the environment problems still exist and there is no obvious turning. Industrial pollution prevention relates to extensive fields, it involves environment and resource, not only lower reaches and ends, but upper reaches and sources also. The correct way is to join economic development and environmental protection into an organic part, and to deal with all points above together as a unity. We consider that problems below exist in the present policy and legislation.

1.1 For government’s reason, environment protection and resource management are authorized to different departments. Moreover, people are still acting in traditional modes. The above reasons cause the “Artificial separation between environment and resource”.

Chinese legislative power leans too much on administrative power, besides of it, most of article is established to suit for present structure of administrative management. The laws and policies which relate to upper reaches and sources are in fact not made and carried out by the environmental managing departments. Mainly they are: Industrial policy, economic policy, energy ( types and prices) policy, transport policy, technology policy, import and export trade policy and so on. The environmental managing departments are working on mapping and carrying out related policies for lower reaches. They focus on controlling pollution discharge during the later stage of production (taking charge of enterprises’ pollution-discharge level reaching national standards). However, they ignore the pollutant production and pollutant reduction during productive progress. Because of the vertical and horizontal crossing of administrative managing system and the effect of extensive economic developing mode over a long period of time, the conformity of environmental policy, policy from departments and local policies is very low. Between the environment and development preference, latter one is acquired much more attention than environmental protection. There’s neither environmental eco-veto nor decision procedure including strategic plan, policy and important planning items are made. Also, economic, society and environment haven’t been considered systematically.

In the remarking of enterprise-responsibility process, they focus on enterprises’ output, total value of production, profits, tax and increment of assets, but ignores the marks related to environmental protection. No promises for enterprises to make in environmental protection. Even though the “pollution discharge reached the standard level” still have questions. In joint venture project with foreigners, local government and department emphasize on economic development, so some of the heavy pollution items are shipped into China.

Therefore, yet we haven’t been working effectively on making policies and legislation on industrial structure, technology and process application, source pollution prevention, and to prevent pollution with effective economic measures.

1.2 Most environmental legislation are set up from the stance of governmental management, it emphasize on the right of administrative, but less articles on protecting individual and enterprises benefit, which could not fully represent the rights of civilian and enterprises to protect their economic and environmental benefit.

In fact, it is very important to carry out The Cleaner Production Technology, which not only reduce environment pollution, but raise the enterprises’ benefit, improve workers’ working condition and safety during production. It is closely linked to the benefit of them-self. This should embody in legislation.

Appropriate encourage and restrain system should also be set up and to promote industries following the policies, laws and regulations.

Lacking public participation and supporting from mass level, the legislation’s power will be weakened. This is also a reason of happening “ actions against law and no-accused on violating law”.

1.3 Regulation about “ The one who pollutes should harness ” and the pollution charging systems have illness. Express in the too low fine levels and short of factors in fine details.

Because the fine is lower than the cost of pollution harness, enterprises prefer pay the fine than to harness. So, no agenda on investment in the Cleaner Production technology application for enterprises. License systems are effective abroad. Because of ineffective monitoring and managing measure, license system is difficult to carry out in China and no due effect has bee brought into full play.

The policy of “The one who pollutes should harness” has been carried out in a long period of time, which guides enterprises to set up doted harness facilities. Separate investments, in fact, not only cause large one-time cost to one enterprise, but hard to reach the degree of industrialize level as well.

With low efficiency management, It’s not benefit for the prevention and harness of industrial pollution, and do not cope with the principle of “ Pollution harness centralize” as well as large-scale socialized production.

Besides, present laws are made according to different mediums. It’s under-control separately according to different types—water, air and soil. This will cause the second pollutant during the mediums transfer. Therefore, the total amount of pollutant reduction seems to be less effective.

1.4 Unclear borders between policies, laws, administrations regulations and managing bodies mixed, produce negative effective.

The basic legislation articles are equal to or similar to policy principle. Some administrative regulations are usually issued as documents. These documents which appear as “rules”, “Regulations” or “ suggestions”, which do not get into the legal track, so they’re less authority. Some laws are poor in forerunning. Some articles are obviously falling behind or even being away from reality. Moreover, some legislation and regulations are not mature enough and are less operative.

As a legal system, there’re still imperfect and blind-point aspect, among laws articles and regulations do not set up a close linkage or dependency. This will cause some pollution prevention and harness problems occurring because no law can follow in our market activities.

2. The location of The Cleaner Production policy

2.1 Relationships among The Cleaner Production policy and legislation, standard and regulations.

Policy is a guideline which is made by the government for achieving the target in a period time in history. Policy matches with state development strategy, which represent the wills of government realize it’s development strategy.

Law is made by National Legislation Organization, passed by national highest power organization and execute by government department.

Articles and regulations are the detailed law. It give a clear explanation and statement so as to ensure the law executing in right way.

Law involves national statutes, professional statutes and local statutes. It’s usually issued and carried out by government organization (practicing organization).

Marketing economy is a legal economy. “ To govern the country by laws” demands all the activities should be under controlled, standardized and guided by law.

However, a perfect policy statutes system that not only relates to legislations, but it should be pledged to practice and followed effectively also. It needs an effective supervise and monitor system.

Law, statutes and regulations form the foundation of the policy. It gives the basic requirements in applying law, detail regulations and process of practice, supervise as well as monitor method. It clearly stipulates the legal responsibility when violate law.

As an organic part of national environmental policy and industrial policy, The Cleaner Production policy should propose the action code and guidance thoughts of pollution prevention in current China, The Cleaner Production. legislation of The Cleaner Production should be the legal form that represent the nation’s Cleaner Production policy. Among these laws, pollution prevention and The Cleaner Production should be placed in a higher position.

It should become the focus of environmental legislation. It should be an organic part to embodied into national environmental legal system and industrial legal system.

Standard is a central sector in Industrial Pollution Control. To carry out The Cleaner Production, we should set up perfect measure methods, strict and scientific examine standards and standard system to assess The Cleaner Production. So, to reduce pollutant and reduce of energy & material consume. This is a basic action.

Till now, we still don’t have a set of perfect standard system for environmental protection industrial products. And no strict regulations and technology standard are made for environmental protection standard and for common industrial products, equipments and production line.

2.2 The proposal of The Cleaner Production policy location in national environment & resource policy & national industrial policy

The Cleaner Production is the mode of industrial development and strategic practice under the guidance of sustainable development strategy. It has its own specific principle and concept, technology content and practical tools. It’s also a connect point. It combines environmental protection with economic development. It joins economic profit & environmental benefit together.

The Cleaner Production provides a guidance line and basic principle for making national environment & resource policy and economic development policy.

Therefore, The Cleaner Production policy should become an organic part of national environment & resource policy and principle should be located in legal systems by means of legislation rather than isolated from other policy. It should be located from legal track.

The location of The Cleaner Production in environment & resource statutes system should follow the principles below:

  1. “The end to the source”. We should emphasize on control of resource reduction and completed progress control instead of emphasize on procession of the end. We should turn pollution harness into pollution prevention.
  2. Environmental pollution comes from wastes of resource. Industrial production should accomplish the unity of economic profit and environmental benefit.
    According to the statistics, in national economy operation, the final product that is in our social needs is only occupied 20-30% of used raw materials. The other parts all turn into pollutants and waste. The purpose of carrying out Cleaner Production and recovery and recycle of waste is just to improve the utilization ratio of resource while reducing resource (including energy resource) consume and waste, and finally get the effect of pollutant reduction.
    Environment is closely linked to resource. It is another sides of one issue. To make policy, we should pay attention to their coherency instead of separating them.
  3. Join the mediums (soil, water and air) as a unity. The present policy and legislation separate the three mediums to make laws for providing and curing pollution. However, according to The Cleaner Production principle, the three mediums should be treated as a unity so that no pollutant happened in mediums transfer process.

3. Proposals of the national policy statutes system for The Cleaner Production

The Cleaner Production and pollutant prevention has become the focal point of national environment policy and legislation. Because of the close-knit relationship between The Cleaner Production and the source and productive progress of industrial production, it also relates to industrial departments such as circulation and service, so it should be the key point in nation’s industrial policy.

In management, national economy synthetic department and environmental management department should be joint hand and carrying out The Cleaner Production with related organization, so that The Cleaner Production can embody in different sides, such as technology reform, resource synthetic utilization and production management to make pollution prevention and economic management an organic unity.

Therefore here are the suggestions for policy system that relates to The Cleaner Production:

(1) Industrial policy

National strategy: Sustainable development and “Science & Education rejuvenate China” strategy. These above turn the mode of economic increment from extensive to intensify. From traditional developing mode with high investment, huge resource expense, huge pollution discharge to new developing mode, “economize on resource”, “friendly environment”.

  • Industrial structure policy: select key industries to support, select to restrict or to ban developing industries, cut high energy consume and heavy polluted enterprises extensively.
  • Industrial organization policy: propose to rational scope and the mode of resource utilization of enterprise’ operation. (To improve economic profit & environmental benefit by means of reducing cost). We should carry out the revise policy to merge, reorganize assets, shut business and so on.
  • Industrial technology policy: proposed to lead enterprises to take suitable & best cleaner technology and to limited the range of banned technology and material, so as to push forward the progress in technology and renewal of technology. This involves policies for eliminating backward technology and update or replace with modern technology and equipments in limited period of time.
  • Industrial statutes policy: making policy statutes that relates to The Cleaner Production of professions according to ISIC. Proposing limits and guide policies to industry’s production scale, process & technology, raw material selection, which have heavy pollute products. These involve technological equipment policy? raw & subsidiary material policy. Also, we should make detailed principles of professional The Cleaner Productions and guidance of professional waste reduction and so on.
  • Local Industrial policy: Proposing policies of embodying local advantages, revising the industrial layout and improving local environmental quality according to the layout of resource, the local environment condition, local industry structure and developing level.
  • Import and export managing policy: It involves the permission of importation and quota management: register of export declaration (for example, the punishment of illegal imported goods ODS). Cutting down the importation tax of environment protection technology and equipments. To attract transnational companies to join the domain of environmental Protection and energy resource in a large range. To lower the importation tax of raw materials after high energy consuming processing so as to increase percentage in importation.

(2) Laws and Statutes of environment & resource

  1. The Cleaner Production should be right located. We should emphasize the prevention policy, clearly stipulate the content of carrying out The Cleaner Production, recover waste and comprehensive utilization of the waste.
  2. Managing regulation
  • Supervision regulation of The Cleaner Production
  • Cleaner Production responsible regulation (add the content of The Cleaner Production in enterprise operation responsibility monitor system) pluses eco-targets into achievement assessment of enterprises.
  • Environmental effect assessment and attached regulations of the “3-meanwhiles”. 
    During projects approval and technical reform as well as designing process, attaching Cleaner Production supervision and audit process.
  • Ratification regulation of pollution discharge permission.
  • Environmental symbol regulation.
  • The Cleaner Production reporting regulation of enterprises and professions.
  • Fine system of pollution discharge. Turn “the one who pollutes should harness” into “the one who pollutes should pay the fine.” Develop environmental protection industries. Turn “decentralized harness “to” centralized harness.
  • “The voluntary agreement” regulation
    Enterprises make environmental promise by means of signing voluntary agreements with responsible government department.
  1. Standards
  • The standards of technology and The Cleaner Production of Production equipment.
  • The Standard and assessing method of “source reduction”---The assessing standard system and calculation of “The Cleaner Production”.
  • The environmental protection standard of Industrial Products (professional environmental standard)
    The mutual promotion between The Cleaner Production and IS 014000, so as to provides best environment and solid foundation for Cleaner Production to carry out. Meanwhile, to perfect IS014000 series standards which relate to pollution prevention . The domestic industry management should get on the track of international standards as quickly as possible while also pose environmental standards for foreign industry entering Chinese market.

(3) Economic policies & statutes of The Cleaner Production

  1. Tax/fee policy: Enterprises who use harmful or poisonous materials should pay tax according to the content of harmful composition and the amount of use. For example: levying environmental taxes on ODS and related products, levying discharging fee to the enterprise who is using ODS, levying compensation tax on enterprises with pollutant discharge, such as levying discharge tax of SO2, and levying extension tax of resource. The original levy standards are too low. We suggest that the new standard should be nine times more than the original one.
     
  2. Price policy: making rational price policy of resource. Utilizing signals of price to guide consumption. Encourage the enterprises to produce cleaner products by means of different price policies or offering cleaner products suitable price bonus. The present price of mediums such as water is low. And it will certainly cause the over expend of resource, then where is economize on resource?
  • Policy that encourages utilizing cleaner energy resource.
    We should start from related laws and statutes. offer a favorable conditions for development who produce cleaner energy resource such as wind energy, solar energy and biological energy.
  1. Offering preference and protection on tax levy on studying production, selling, recovering and utilizing resource of cleaner substitute.
     
  2. Investing policy: except for the budget from governments to subsidize important items and support medium & small enterprises,. By means of opening markets, encourage and attract foreign capital, enterprises and individuals to invest The Cleaner Production items. Carry out the policy “to invest is to be benefited” ,to create best invest environment to attract multi-channel funds.
     
  3. Policy of credit and interest discount: for example, items of technology improvement in The Cleaner Production can be the first to get discount.
     
  4. Policy of returning cash pledge: for example, for tinned drinks, to carry out the policy of returning cash pledge is good for recovering.
  5. Set up the clean-production funds, which is use to supporting enterprise start The Cleaner Production items. It’s also possible to take a certain percentage of levied discharge pollute tax as part of funds.
     
  6. According to the policies that relate to industries with high and modern technology and were made by the State Council, after examined by related departments, the enterprises that carry out CP can get the same preference.
     
  7. The CP equipments that have passed the examinations of CP can improve its rote of depreciation. It can also fasten the speed of depreciation.
  8. Governmental purchase: For purchase, the government should choose the clean products in-advance. (Giving priority to the government purchase and to purchase by means of inviting tenders.)

(4) Policy and measure of information system and education and training.

Information:

The acquired character of information is the key to improve the CP strategy successfully.

  • Set up a dynamical data collecting system of “source reduction and recycle”, analysis the practicality and effect of data to set up related database and policy supporting system.
  • Setup an annual reporting system of the promoting and applying CP among profession & enterprise. According to the report and the result assessment to decide the next year plan of funding and necessary subscription.
  • The CP information exchange and information system for technology transfer.

Education:

  • Senior education: The CP lesson formally become a part of formal education system in universities. This involves subjects for university students and postgraduates (It belongs to cross subject and education over subjects).
  • Training factory directors, management staffs, technicians and sells-person.
  • Pre-position & professional training for workers.
  • Offer public training courses to eliminate the blind in The Cleaner Production and education of legal popularization. Improve the public consciousness and strengthen the public participating and supervising.

Moreover, It’s essential to emphasize on training officials and related staffs of governmental mechanism, financial system, news media, judicial department and so.

Reference

  1. Wang Jinnan, Marketing economy and prevention of industrial pollution [M], Beijing. Environmental& Science Publishing House of China.1996.9
  2. Qian Zhi, Qian yong. Policy proposal for China to pursue The Cleaner Production [J]. China Soft Science .1998(6): 117-122

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